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The Impact of Property Tax On Your Mortgage

by | Aug 16, 2018 | Finance

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Property tax has an impact on your monthly mortgage payment. Therefore, it is extremely important to have an estimate when deciding to buy a home.
Several aspects of a property are assessed for its valuation, including the value of similar properties and the overall condition of the house (or other property). The higher appraised value of the home will lead to higher property tax.
Unfortunately, property tax is likely to increase if the economy is booming and your home value has increased. Additional fixtures and improvements can also contribute to higher property tax.
To calculate your property tax, a professional will establish a tax rate that applies to your area and multiply that rate by the value of your house. 
For example, if the value of your house is valued at $300,000 and the tax rate of your area is 2%, your property tax will amount to $6,000 annually, which will translate to $500 per month that is paid as a part your mortgage. 
To determine your property tax, a local tax assessor will establish the tax rate for where you live, and that amount will be multiplied by the value of your home. Bear in mind that other fees may be applied also. Most of the real estate websites out there will have some of this information on their home listing pages.
We’d recommend that you ask these important financial questions to your lender when you are applying for a mortgage. Your real estate agent should be able to help with this as well. 
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The information contained in this blog is for general information purposes only, and while believed to be accurate, Trelora assumes no legal responsibility for accuracy. Information provided within should not relied upon as legal advice. Please consult with your local advisors for independent information regarding availability and applicability in your market.